Education and Labour Market Participation of Women in Asia : Theory and Evidence

The role of education in determining the labour force participation of women in Asia is analyzed both theoretically and empirically. A household bargaining model over the labour market participation of the wife is proposed based on the Generalised Nash Bargaining Solution. The effect of education has on the wife's participation in the labour market is shown to depend on the wife's preferences over participation. Household survey data from five Asian countries are used in estimation of a reduced from model of the wife's participation. The effect of education on the wife's participation varies significantly by country with participation less likely in countries with more traditional gender roles.